[GNC] House renovation Expense or Asset?

[Mike or Penny Novack]

On 5/11/2018 1:21 PM, Tony Vanson wrote:

> I assume that when all the construction is finished, the total cost could
> be assumed to be treated as an asset increase to the value of the house?
> In this instance, would all additional expenses occurring during
> construction be treated as a debit on my bank account but a credit as an
> asset increase?
> I would really appreciate some advice from any of the many knowledgeable
> users on this forum.
>
Correct, with the caveat that while we are competent to tell you HOW to 
do things using gnucash, and while many of us KNOW the the correct 
answer, we do not hold the qualifications to give accounting/tax advice 
of this sort.  At least I do not.

Michael D Novack

PS -- Do you understand  WHY this is a tax issue? Again speaking as an 
"amateur", living expenses are not deductible, maintenance expenses are 
not deductible, but capital improvement expenses eventually ARE (in 
effect) deductible from the capital gain which may result when you sell 
the house. Raising the basis reduces the gain.

-- 
There is no possibility of social justice on a dead planet except the equality of the grave.